This weekend, institutions are not working, and the market is generally in a volatile trend. Bitcoin is fluctuating around $97,500, and Ethereum is fluctuating around $3,750.
Among altcoins, some old coins from 2017 such as XRP, HBAR, ADA, and EOS have risen over 30%.
This indicates that Bitcoin's performance is starting to weaken, while Ethereum and other altcoins are starting to strengthen. This is a typical altcoin market; as long as Bitcoin stabilizes, altcoins will rotate and rise.
So why have these old altcoins surged so much?
Mainly because of the favorable policies from Trump.
He hopes to eliminate all capital gains taxes on cryptocurrencies issued by American companies.
This means that Americans holding ADA, ALGO, XRP, HBAR, and other cryptocurrencies will enjoy profits that are completely tax-free because the creators of these coins are American companies.
At Coinbase, the spot trading volume ranked first is actually XRP, and its trading volume equals the total of BTC, ETH, and DOGE, indicating that FOMO sentiment among American investors has risen.
XRP's market capitalization has also reached a new high, returning to the top three, and it plans to issue new stablecoins.
XLM's Stellar coin trading volume has also surpassed SOL. XLM is an old project launched in 2014, which lost 90% in the past four years, but has quickly returned to historical highs in the last three weeks.
Looking at the current trend, as Ethereum rises, funds are starting to flow into altcoins on exchanges; if you previously held altcoin projects, don’t easily switch positions, as there is likely to be a rotation market.
The reason there was no altcoin season before was the lack of new funds in the market, but with the Federal Reserve continuously lowering interest rates, the incremental funds in the market are gradually increasing.
Although many coins on exchanges are trash, they can still be picked up and speculated on.
However, there are methods for picking these projects.
Currently, the best speculative targets are two types: newly launched meme coins and some reactivated old coins.
The coins that have recently surged are also old coins from 2017 and this year's new meme coins because they have the least supply pressure.
I personally have high hopes for new projects, such as the recent ACT.
In this bull market, it is recommended to focus on projects in new tracks and with new narratives, as these projects do not have an upper limit on valuation and have more room for imagination in the market.
Put yourself in their shoes; if you were a capable operator, would you choose to boost a target that has already peaked in the last cycle, or a project with great imagination and no trapped positions above?
Choosing old altcoins must be done with caution because most of these projects have dropped over 90%, and there are heavy trapped positions above, with limited imagination space.
This time, the operators are clearly using Trump's policy benefits to raise prices for selling; we need to observe whether the consensus and enthusiasm for these projects can be sustained, so as not to become a bag holder again.
When screening old coins, if it is a DeFi project.
If its various data performances are not as good as in the previous bull market, then its market capitalization will find it difficult to exceed previous highs, and such projects need to be approached with caution.
For public chain projects, if they did not catch up with this wave of meme hype and still use the previous DeFi project data for measurement.
Their market capitalization is unlikely to exceed previous highs because the market has limited imagination for these projects.
